10 Best Medical Stocks to Buy Now

4. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 96 

Merck & Co., Inc. (NYSE:MRK) is a U.S.-based pharmaceutical company that focuses on producing vaccines and providing hospital care services. Its top-selling cancer drug, Keytruda, is a standout product with global recognition.

In Q2 2024, Merck & Co., Inc. (NYSE:MRK)’s Human Health business grew by 11%, Animal Health sales rose 6%, and its cancer drug KEYTRUDA saw a 21% increase, reaching $7.3 billion. GARDASIL sales increased 4% to $2.5 billion, and VAXNEUVANCE grew 16% to $189 million. The company benefited from rapid international launches. Merck’s new pneumococcal vaccine, CAPVAXIVE, received FDA approval and an ACIP recommendation, while its acquisition of EyeBio marks a venture into ophthalmology. Additionally, Merck’s Animal Health unit acquired Elanco’s aqua business. Merck also launched WINREVAIR, a new vaccine for pulmonary arterial hypertension, generating $70 million in sales.

As of Q2 2024, from the total number of hedge funds that Insider Monkey tracked, 96 held stakes in the stocks with Fisher Asset Management being the largest stakeholder with shares worth $$1,766,132,800. Analysts are also bullish on MRK giving it a Strong Buy rating. 19 Wall Street analysts have set a 12-month average price target of $140.64 for Merck & Co., with forecasts ranging from $125.00 to $155.00, indicating a potential 22.58% increase from the current price of $114.73. This makes MRK one of the best medical stocks according to analysts.

Regarding Merck & Co., Inc. (NYSE:MRK), Baron Funds’ Baron Health Care Fund made the following statement in its investor letter for the first quarter of 2024:

“Global pharmaceutical company Merck & Co., Inc. (NYSE:MRK), Inc. contributed to the continued growth of Keytruda, the company’s key asset and the leading immuno-oncology agent used to treat a variety of cancers. The FDA’s late March approval of pulmonary arterial hypertension drug sotatercept, also drove share gains. We retain conviction as Merck has started to transition from prioritizing its Keytruda franchise to building a more diversified business, with a focus on the Gardasil vaccine, pneumococcal vaccine development, and cardiovascular drug development, well in advance of the scheduled expiration of patent protection/exclusivity rights.”